Practical Seminar on Maritime and International Logistics by Attorney Nii

Minoru Nii, an attorney at law (member of the Tokyo Bar Association), has been continuously providing practical explanations related to maritime and international logistics at the "Shipper and Carrier Liability Scope" seminar series hosted by Interlink Co., Ltd.

The seminars are co-hosted with Tokio Marine & Nichido Fire Insurance Co., Ltd. and mainly target freight forwarders, NVOCCs, shippers, and insurance practitioners.

This article organizes the content of the maritime and international logistics practical explanation seminar where Attorney Nii spoke, covering topics such as shipboard fire, general average, cargo claims, container pickup refusals, dangerous goods declarations, and the relationship with special clauses covering additional storage costs.

Rather than just introducing the seminar, this article is positioned as a practical guide to help shippers, freight forwarders, and insurance practitioners understand what needs to be checked, how to preserve evidence, and how to organize responsibility and insurance responses in the event of cargo accidents.

Seminar Positioning

The "Shipper and Carrier Liability Scope" seminar series is a practical seminar designed to clarify liability relationships, initial responses, evidence preservation, recourse, defense, and insurance handling related to international logistics accidents.

When a cargo accident occurs, multiple parties such as shippers, freight forwarders, NVOCCs, shipping lines, insurance companies, surveyors, and overseas agents are involved simultaneously.

At this time, if it is not promptly clarified who bears the transportation contract liability, who can be claimed for damages, and which terms and liability limitations apply, there is a risk of misunderstandings regarding recourse and defense strategies.

Attorney Nii's seminars are characterized by organizing not only legal theory but also the evidence, documents, costs, insurance, recourse, and defense flows that are actually problematic at cargo accident scenes for practitioners.

February 2026 Seminar: Practical Handling of Fire and General Average

On February 25, 2026, in Tokyo, Interlink Co., Ltd. held the "Shipper and Carrier Liability Scope Seminar — Practical Handling of Fire and General Average."

The seminar used the fire accident on the container ship "ONE HENRY HUDSON" as a case study to explain the liability relationships and practical responses that shippers and freight forwarders should grasp.

When shipboard fire or general average occurs, what affects the losses of shippers and forwarders is not only the final cause of the incident.

Before investigating the cause, what is confirmed, what is recorded, and which parties are notified during the initial response significantly impact subsequent insurance claims, claims against the carrier, recourse, defense, and cargo delivery.

Cargo Claims and Initial Response

Compensation claims for cargo damaged by fire or other causes are organized as cargo claims.

In cargo claims, it is important not only to confirm the transportation contract but also to secure supporting documents that prove the cargo condition at the start and end of transit.

For example, photos at shipment, stowage records, B/L, packing lists, survey reports, inspection records at arrival, temperature logs, warehouse in/out records, and communication records such as emails and chats are involved.

If evidence is not preserved in the initial response, it may become difficult to prove the damage scope or cause of responsibility even if an investigation starts after the accident.

Therefore, for cargo accidents such as fire, wet damage, breakage, or quantity shortages, it is essential first to document the cargo condition, container condition, seals, delivery status, and notifications to relevant parties.

Shipboard Fire and Carrier Liability / Exemption

In shipboard fire cases, the carrier may claim exemption from liability citing the fire as the reason.

On the other hand, if the fire is caused by the carrier’s own intentional or negligent acts, or if it is judged that the ship could not safely navigate due to poor maintenance or other reasons, the exemption may be invalidated.

The issue here is not a simple classification that "the carrier is not responsible because there was a fire."

The fire cause, the ship’s maintenance condition, presence or absence of dangerous goods declarations, stowage, the shipping line’s management system, safety management under the ISM Code, and post-accident responses are comprehensively reviewed.

Moreover, even when the carrier’s liability is acknowledged, it might be limited within liability caps.

Therefore, shippers should not rely solely on claims against the carrier but consider protection through marine cargo insurance.

General Average (GA) Practicalities

General average is a system where sacrifices or expenses reasonably made to avert common maritime peril involving the ship, cargo, and freight are shared among interested parties.

In cases such as shipboard fire, port entry for refuge, firefighting activities, salvage, cargo disposal, and expenses to ensure the safety of the ship and cargo, general average might be declared.

Under general average, even if one's cargo is undamaged, a general average contribution fee may arise.

After a general average declaration, shippers may be asked to submit a general average bond (Average Bond).

When marine cargo insurance is in place, insurance companies sometimes issue an average guarantee (Average Guarantee) to cover the contribution.

Conversely, if uninsured, a deposit of security may be required, and failure to provide this can result in inability to receive the cargo.

Responding to Container Pickup Refusal

Container pickup refusal often becomes an issue after fire or general average.

Reasons for refusal at the destination side may include cargo damage, decline in product value, incomplete general average procedures, or the consignee’s reluctance to bear costs.

In such cases, it is crucial first to confirm the situations at destination and origin and obtain instructions from the shipper in a form that can be recorded.

If instructions are lacking, options such as storage, resale, return shipment, disposal, or other measures should be considered according to local laws and actual logistics practices in the cargo’s country.

Leaving this unaddressed leads to accumulating demurrage (storage fees) before pickup and detention (container return delay fees) after pickup.

Therefore, alongside cause investigation, it is necessary to promptly decide on a policy to stop cost increases when container pickup is refused.

Importance of Dangerous Goods Declarations

When a shipboard fire is attributed to dangerous goods, the shipper may be held responsible.

For cargo classified as dangerous goods, it is necessary to check the UN number, UN classification, Proper Shipping Name, Packing Group, SDS (Safety Data Sheet), etc., and accurately inform the shipping company or freight forwarder.

The legal obligation to notify under commercial law is broad; even if you intend to declare the cargo as dangerous goods, if the required information is incomplete, failure to fulfill the notification obligation could become an issue after an incident.

For dangerous goods declaration, simply having the SDS is not sufficient.

It is important to keep records of when, to whom, what information, and by which document the notification was made.

Failure to declare or incorrect declaration of dangerous goods could potentially lead to claims from the shipping company, damage to other cargoes, subrogation claims from insurance companies, and liability claims against the forwarder.

2024 Event: Cargo Claims and Container Refusal Practicalities

In July 2024, seminars were held in Tokyo and Osaka under the theme “Scope of Responsibility of Shippers and Carriers: Basics of Cargo Claims and Practical Handling When Containers Are Refused.”

The seminar covered fundamental liability relationships in case of cargo incidents, claims against the carrier, evidence preservation, B/L clauses, liability limitation, burden of costs, and disposal measures when containers are refused.

In cargo claims, it is necessary to clarify not only the presence or absence of cargo damage but also the cause of the incident, transport section, timing of delivery, damage amount, notification deadlines, liability limits, and insurance status.

Regarding container refusal, it is essential to clearly define who issues instructions and who bears the costs among the shipper, consignee, forwarder, shipping company, and overseas agents.

This theme is related to the 2026 seminar on fire and general average and is important in preventing damage escalation after cargo incidents.

Part 2: Special Clause for Additional Storage Cost Coverage

At the February 2026 seminar, as Part 2, Interlink Co., Ltd. introduced a newly devised and studied special clause for freight forwarders’ comprehensive insurance called the "Special Clause for Additional Storage Cost Coverage."

This endorsement is designed with the risks of demurrage, detention, and additional storage costs arising from consignees’ delayed pickup in mind.

However, it is not intended to unconditionally cover additional storage costs.

The key point is that the clause encourages early identification of additional storage risk and promotes prompt delivery or determination of disposal policy for the cargo.

The insurance should function not just to compensate for costs after an incident but also as a system that enables stakeholders to quickly decide on response policies to prevent further damage.

Points Freight Forwarders and NVOCCs Should Learn

Freight forwarders and NVOCCs may bear responsibilities beyond merely serving as a contact point when a cargo incident occurs.

They need to confirm their contractual position, whether they issue House B/L, whether the applicable clauses are properly presented, and the nature of contracts with overseas agents and actual carriers.

In case of an incident, it is important not to make easy acknowledgments of liability to the shipper, to preserve evidence, and to promptly notify the insurance company.

Especially in cases of fire, general average, pickup refusal, and dangerous goods incidents, costs can quickly escalate, so early policy determination is necessary.

The seminar content is useful for understanding what forwarders must avoid in incident response, which documents should be checked early, and when to consult with insurers or attorneys.

Points Shippers Should Learn

Shippers sometimes mistakenly believe that they can always recover the full amount by claiming against the carrier or forwarder when a cargo incident occurs.

However, in actual logistics practice, carrier liability is subject to limitations, and full recovery of damages is not guaranteed.

Additionally, in shipboard fires, issues such as exemptions, seaworthiness, dangerous goods declaration, and fire causes arise, and in cases of general average, contribution charges may occur even if the cargo is undamaged.

For shippers, purchasing cargo insurance, preserving evidence after incidents, arranging surveys, notifying the carrier, and contacting the insurance company are all important.

The seminar serves as an opportunity to understand risk management practices from contract and shipment stages, rather than panicking after an incident occurs.

Points Insurance Practitioners Should Learn

For insurance practitioners, understanding cargo incidents and carrier liability is directly related to claims payment, subrogation, liability insurance, and defense strategies.

In cargo insurance, it is essential to verify cause of damage, coverage conditions, exclusions, damage amounts, surveys, general average, and salvage costs.

For liability insurance, considerations include the existence of the insured’s legal liability, claim amounts, liability limits, clauses, notification obligations, and defense costs.

For subrogation, it is necessary to review which parties (carriers, subcontractors, overseas agents, warehousing operators, port operators, etc.) can be charged and to what extent.

New coverage designs like the special clause for additional storage costs should be understood both in terms of post-incident cost burden and their connection to practical damage limitation efforts.

Documents to Confirm

In handling fire, general average, cargo claims, and container pickup refusal cases, the following documents should be checked:

• Bill of Lading (B/L)
• Sea Waybill
• House B/L
• Master B/L
• Carriage Terms
• Invoice
• Packing List
• Dangerous Goods Declaration
• SDS (Safety Data Sheet)
• Materials related to UN Number and UN Classification
• Incident Photographs
• Survey Report
• Temperature Logs
• Receipt Records
• Cargo Insurance Policy
• Freight Forwarder Liability Insurance Policy
• Incident Notification to Insurance Company
• Claim Letter
• General Average Bond (Average Bond)
• Contribution Guarantee (Average Guarantee)
• Invoices from Shipping Company and Overseas Agents
• Demurrage and Detention Statements
• Instruction Records from Shipper and Consignee
• Communications such as Emails and Chats

Especially at the time of incident occurrence, it is critical to promptly check the B/L, incident photos, survey report, dangerous goods declaration, insurance policy, and communication records.

Case Example

Cargo Damaged by Shipboard Fire

A fire may occur on a container ship, causing cargo damage by burning, water exposure, or smoke contamination.

In this case, the causes of the fire, presence or absence of dangerous goods declarations, carrier’s exemptions, seaworthiness, liability limitations, and the scope of marine cargo insurance coverage become issues.

The shipper needs to check the cargo condition, accident photos, survey reports, and insurance policies, and promptly notify the insurance company.

The freight forwarder should keep records of communications with the shipper, shipping line, and insurance company, and avoid easily accepting responsibility.

Cases where costs arise despite undamaged cargo in general average

After a fire onboard, the vessel may enter a refuge port and declare general average.

In such cases, even if your cargo is undamaged, you may be subject to general average contributions.

If insured, the insurance company might issue an average guarantee.

If uninsured, you may not be able to receive your cargo unless you can provide the required security.

In this case, the shipper should confirm early whether marine cargo insurance coverage exists, and the freight forwarder should accurately guide the general average procedures and cargo delivery conditions.

Cases where refusal to pick up containers expanded costs

Following a fire or general average declaration, the consignee may refuse to collect the cargo, causing containers to remain at the port.

In this situation, demurrage, detention, storage fees, return shipping charges, and disposal costs can increase rapidly.

Simply waiting for instructions from the shipper without taking action can lead to significant cost liabilities.

In this case, the freight forwarder should confirm the conditions at both origin and destination, obtain instructions from the shipper in a documented format, and promptly present options such as disposal, return, or storage.

Cases where incomplete dangerous goods declarations led to shipper liability issues

If dangerous goods are identified as the cause of the fire, the shipper’s declaration details will be scrutinized.

If the UN number, UN classification, SDS, dangerous goods declaration, or B/L descriptions are insufficient, there may be issues of notification duty breaches by the shipper.

If dangerous goods information was not accurately conveyed to the shipping line, the shipper may be held liable for damages to other cargo or the vessel.

In this case, the shipper should have submitted the SDS and the dangerous goods declaration, and the freight forwarder should have retained proof of notification.

Important Points

The content covered in seminars is a general practical explanation and does not constitute legal advice on individual cases.

Actual incident responses require case-by-case judgment based on contracts, B/L, insurance policies, governing law, jurisdiction, cause of accident, and evidence materials.

Additionally, in cases of fire, general average, or refusal to pick up cargo, delayed initial response can lead not only to loss of evidence but also to increased costs such as demurrage, detention, and storage charges.

It is important for freight forwarders and shippers to pre-arrange who to contact in the event of an accident, which documents should be saved, and at what point to consult insurance companies or legal counsel.

Summary

Attorney Nii’s practical seminar in maritime and international logistics clarifies the scope of responsibilities between shipper and carrier, onboard fires, general average, cargo claims, container pickup refusals, dangerous goods declarations, and insurance response, offering a hands-on learning opportunity.

The February 2026 fire and general average seminar used the ONE HENRY HUDSON fire accident as a case study, showing how initial actions and documentation can affect the extent of loss.

International logistics incidents involve complex interactions of cause, contractual relationships, liable parties, liability limits, insurance, claims, defenses, and additional storage costs.

Freight forwarders, NVOCCs, shippers, and insurance practitioners should internalize, through seminars like this, what to check and the order in which to respond at the time of an incident.